US Smallcap Stocks Soar, Outperforming Larger Peers by Most in Seven Years

• US small-cap stocks have achieved their longest winning streak against larger peers in seven years.
• The Smallcap Russell 2000 index hit a record high, extending its outperformance over the S&P 500 for seven consecutive sessions.
• This surge is attributed to potentially lower interest rates, which favor small-caps, and robust economic data.
• The last similar trend was in January 2019, following a market rebound from a near 'bear market' in late 2018.
• US markets closed positive despite initial concerns, with Dow Jones recovering significantly and Nasdaq boosted by Alphabet.

Why It Matters: US small-cap stocks are experiencing a significant rally, driven by economic factors and investor confidence.